What is a Bond?
A rental bond is a security deposit that a tenant pays at the start of a tenancy which is then lodged with the relevant state government agency.
The bond plays a vital role in providing peace of mind and protection for you as a landlord. Typically you would ask for up to 4 weeks' rent to be held as a bond and it is important that there is a bond in place at the beginning of every tenancy.
The bond lodgement process is different in each state as there are different rules and regulations regarding bonds.
We are here to guide you through this process.
In this Article:
How Does Bond Work on RentBetter?
RentBetter lets you collect your tenant’s bond in the way that’s recommended for your state.
You can add the bond details and send them to your tenant, then collect the bond either through RentBetter or outside the platform. Once the bond has been paid, it needs to be lodged with your state’s bond authority.
There are three main steps to lodging a bond:
Set up your bond account with the bond authority.
Send the bond details to your tenant for payment
Lodge the funds with the bond authority - Depending on your state, either you lodge the funds yourself or your tenant pays the bond authority directly to complete the lodgement.
To set up and manage the bond, go to the Properties page and click ‘Tenancy setup’.
As you work through the setup steps, you’ll reach the bond section, where the recommended collection method for your state is shown at the top. From there, you can choose how you’d like to collect the bond.
TIP ☝️ - Set up your Bond Account online in advance with your local authority so that there are no delays and you're ready when you find a tenant.
Setting up your Bond Account
Registering with your state’s bond authority can sometimes take up to two weeks after you apply, so it’s best to register as early as possible. We recommend doing this as soon as you’ve created your property ad, so you’re ready to collect the bond as soon as you find a tenant.
You can find the relevant guides to setting up and lodging the bond for your state/territory here.
Adding your Bond Account Details to RentBetter
Once your bond account is set up with the relevant bond authority, you can save the account details in RentBetter so they’re always on hand.
Under the Bond Authority Accounts section at the top of the page, click on 'Add Account' to start adding your registered details.
Once saved, your bond account details will appear at the top of the page. If you have properties in more than one state, you can add a bond account for each, and they’ll appear as separate tabs at the top.
Collecting the Bond Payment
You can choose to collect the bond payment through RentBetter or outside of RentBetter.
How you collect your tenant’s bond depends on your state. In some states, the simplest option is to have the tenant pay the bond directly to the bond authority, which completes the lodgement in one step. In others, you’ll need to collect the bond from the tenant yourself and then lodge it with the bond authority.
You’ll find the recommended method for your state on the setup page.
Payment Collection through RentBetter
Collecting the bond through RentBetter is simple, but please note that RentBetter doesn’t lodge the bond for you.
When you collect the bond through the platform, your tenant will be prompted to pay it through their tenant account. Once the payment goes through, a receipt is issued and the funds are transferred directly to your bank account. You’ll then need to lodge the bond with your state’s bond authority.
Payment Collection Outside RentBetter
You’re welcome to collect the bond outside of RentBetter, either by having the tenant pay it into your bank account or, where recommended for your state, by having them pay the bond authority directly. You can select this option when setting up the tenancy.
Steps to Set up the Bond Collection
1. Set up the Tenancy
To set up your bond, you'll first need to set up the tenancy. Navigate to the 'Tenancy setup'.
Within the 'payments' section of the setup, you can scroll down to find the bond details.
2. Choose the Bond collection method
Within the bond section of the setup, you can choose how to collect the bond.
To collect directly with the bond authority, choose that option if available (E.g. NSW Rental Bonds Online).
To collect via RentBetter or directly yourself, choose 'Landlord or another person' and set if you want to collect the payment via RentBetter.
3. Finalise the Tenancy Setup
Once you finalise the setup and send the tenancy to your tenant, they will be invited to get set up on RentBetter.
After they have signed the lease and added a payment method, they will see the bond payment step on their dashboard.
The tenants should then make the payment as requested on the platform, or directly to the bond authority.
If you are collecting outside platform, once the tenant has paid the bond you can mark this as paid in your account and upload any receipts or documentation relating to the lodgement.
Setting up and recording the Bond if it's already been paid (Existing tenancies)
If you have an ongoing/existing tenancy, the bond likely has already been paid and lodged. RentBetter allows you to record the bond details for you and the tenant in the platform so that no request is sent to the tenant to make payment when they set up.
To record a bond that’s already been paid:
Go to the tenancy setup.
In the Bond section, enter the bond amount and due date. Under ‘Has the bond already been paid?’, select ‘Yes’.
Check the bond details, upload any relevant attachments, and save.
When you send the tenancy details to your tenant, they’ll see that the bond has been marked as paid, and they won’t be asked to make a payment.
You can also record and add bond details by visiting the bond dashboard directly in your account via the left navigation menu and selecting 'Bonds' in the sub-menu.
Viewing the Bond Details - Bond Dashboard
Once you've set up the bond, you can easily view its details and status. Simply click on your Tenancy and scroll down to the bond section, or you can visit the bond dashboard via the left navigation menu and selecting 'Bonds'.
This will direct you to the bond page, where you can track and monitor the bond's progress, as well as create new bond requests or details.
Additional Bond Payments
Some states allow you to collect a bond top-up if the rent has increased throughout the tenancy.
To collect or record an additional bond payment, navigate to the bond page, click on 'New bond', fill in the details and save.
Need further assistance?
Have more questions on bond? Reach out to our friendly team via the support chat or email info@rentbetter.com.au and we’ll be happy to help.